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297 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility Corporation and other business entity expenditures benefiting a principal For all programs, • An expenditure by a business entity or corporation that benefits a principal, such as a car or housing payment, is considered available when the expenditure is made. • A principal is a person with significant authority in a business entity or corporation, including a sole proprietor, a self-employed person, a partner in a partnership, a member or manager of a limited liability company and an officer or principal stockholder of a closely held corporation. • If the funds used to pay the expense is already included in the gross income counted for the self-employed individual, then this expense is not additional income. It is part of the gross income of the business. • In a partnership, if Partner A pays an expense on behalf of Partner B and Partner B is the applicant for benefits, the payment may be considered income. Because the expense is not paid from Partner B’s share of gross business income, it is considered additional income to Partner B. This income-in-kind is counted as earned or unearned income depending on whether Partner B is actively engaged in the business. • If the individual is actively engaged in producing the income used to pay the expense this income is considered earned income. If the individual is not actively engaged in producing the income used to pay the expense this is considered unearned income. Other resources Self-Employment Income: This EG provides direction on identifying self-employment, using the Self-Employment Screening Tool, acceptable types of verification used for self-employment, reading tax forms, and reviewing the Self-employment screens in ONE. Corporate assets Except in cases where the owners of corporations are considered self-employed, assets held and owned by the corporation are not considered the participant’s assets. Note: • To locate information on the business, see the Secretary of State website at http://sos.oregon.gov/business/ Pages/business-information-center.aspx, Business Information. If the business is licensed as a corporation in Oregon, the business name should appear in a business name search. • The owner of a closely held corporation will have legal documents showing the date the business was incorporated. For HSD medical programs, income from corporations and business entities are counted in both monthly and annual income. Click here for examples: Corporations and business entities.